GST Compliance – Aadhaar Authentication (Normal Taxpayer)

Aadhaar Authentication for Normal Taxpayers in GST

Edition: September 2025
Disclaimer: This manual is for compliance facilitation. It does not substitute statutory provisions, notifications, or circulars. Taxpayers must verify with the CGST Act/Rules and GSTN updates.

✍️ Preface

Aadhaar authentication under GST is a mandatory KYC requirement for securing registration as a Normal Taxpayer. The process ensures identity validation of promoters/partners/directors and the Primary Authorized Signatory (PAS). Depending on the risk parameters set by GSTN, taxpayers may undergo OTP-based authentication or biometric verification at a GST Suvidha Kendra (GSK).

This manual consolidates the law, eligibility, filing process, timelines, FAQs with statutory basis, and a practical checklist.

📑 Table of Contents

1. Law Governing Aadhaar Authentication

2. Who Must Authenticate Aadhaar?

3. Step-by-Step Aadhaar Authentication Process

4. Timelines & Non-Compliance

5. FAQs (with Basis)

6. Compliance Checklist (Fillable Format)

⚖️ 1. Law Governing Aadhaar Authentication

• Section 25(6A–6D), CGST Act, 2017 – Prescribes Aadhaar authentication for GST registration.

• Rule 8, 9, 25, CGST Rules, 2017 – Deal with Aadhaar authentication, biometric verification, and physical site visits.

• CBIC Notifications – Mandate Aadhaar authentication for Normal, Composition, SEZ, Casual, and ISD taxpayers.

🎯 2. Who Must Authenticate Aadhaar?

• Normal taxpayers, Composition dealers, SEZ units/developers, ISD, Casual taxpayers.

• Exemptions: Government departments, PSUs, Local authorities, Statutory bodies.

• By Constitution of Business (COB):

  • Proprietorship – Proprietor + PAS.

  • Partnership – One Partner + PAS.

  • HUF – Karta + PAS.

  • Company – One Director + PAS.

  • LLP – One Partner + PAS.

  • Society/Trust/Club – One Member + PAS.

  • Foreign Companies – Indian resident Director + PAS.

🛠️ 3. Step-by-Step Aadhaar Authentication Process

A. Selection in REG-01 Application

• On Aadhaar Authentication tab → Select Yes.

• Choose required Promoter/Partner/Director and PAS.

B. Authentication Modes

1. OTP-Based Authentication (E-KYC):

   • Link sent on registered email & mobile.

   • Enter Aadhaar → Validate → OTP received on Aadhaar-linked mobile/email.

   • Submit OTP → Success message → ARN generated.

2. Biometric-Based Authentication:

   • If flagged by risk parameters.

   • Book appointment at GSK → carry Aadhaar & documents → biometric/photo verification done.

   • ARN generated after verification.

3. If Aadhaar Authentication = NO:

   • Upload E-KYC documents (PAS + one Promoter).

   • Mandatory visit to GSK for photo/document verification.

   • ARN not generated if not completed within 15 days.

⏰ 4. Timelines & Non-Compliance

• Aadhaar authentication must be completed within 15 days of REG-01 submission.

• Failure/Non-compliance:

  • OTP case → ARN still generated, but application marked for site visit.

  • Biometric case → No ARN generated if not completed within 15 days.

• Incomplete verification = Application deemed not submitted.

❓ 5. FAQs (with Basis)

Q1. Is Aadhaar authentication required for all GST registrations?
Yes, except Govt. Depts., PSUs, Local Authorities, Statutory Bodies. (FAQ 9)

Q2. Can Aadhaar authentication be done later after submission?
Yes, must be completed within 15 days of REG-01. (FAQ 4)

Q3. What if authentication link fails or expires?
Resend from My Saved Applications > Aadhaar Authentication Status. (FAQ 16)

Q4. What happens if Aadhaar = No?
Mandatory GSK visit + E-KYC upload. Application marked for site visit. (FAQ 17, 18)

Q5. Is OTP received separately for email and mobile?
No, a common OTP is sent to Aadhaar-linked mobile/email. (FAQ 15)

✅ 6. Compliance Checklist (Fillable Format)